[Federal Register Volume 89, Number 36 (Thursday, February 22, 2024)]
[Notices]
[Pages 13324-13330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03608]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RD24-1-000]


North American Electric Reliability Corporation; Order Approving 
Extreme Cold Weather Reliability Standards EOP-011-4 and TOP-002-5

    1. On October 30, 2023, the North American Electric Reliability 
Corporation (NERC), the Commission-certified Electric Reliability 
Organization (ERO), submitted a petition seeking approval of proposed 
Reliability Standards EOP-011-4 (Emergency Operations) and TOP-002-5 
(Operations Planning). As discussed in this order, we approve proposed 
Reliability Standards EOP-011-4 and TOP-002-5 and their associated 
violation risk factors and violation severity levels.
    2. It is essential to the reliable operation of the Bulk-Power 
System to protect critical natural gas infrastructure loads that serve 
gas-fired generation.\1\ As the November 2021 Report found, natural gas 
fuel issues were the second largest cause of generation outages during 
Winter Storm Uri.\2\ Proposed Reliability Standards EOP-011-4 and TOP-
002-5 address the concerns raised by the November 2021 Report.\3\ 
Accordingly, we approve proposed Reliability Standards EOP-011-4 and 
TOP-002-5 as just, reasonable, not unduly discriminatory or 
preferential, and in the public interest.
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    \1\ See FERC, NERC, and Regional Entity Staff, The February 2021 
Cold Weather Outages in Texas and the South Central United States, 
19 (Nov. 16, 2021) (November 2021 Report), https://www.ferc.gov/media/february-2021-cold-weather-outages-texas-and-south-central-united-states-ferc-nerc-and; see also id. at 19 n.30 (```Natural gas 
infrastructure' refers to natural gas production, gathering, 
processing, intrastate and interstate pipelines, storage and other 
infrastructure used to move natural gas from wellhead to burner 
tip.'').
    \2\ Id. at 18.
    \3\ See id. at 6, 24, 41-43.
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I. Background

A. Section 215 and Mandatory Reliability Standards

    3. Section 215 of the FPA provides that the Commission may certify 
an ERO, the purpose of which is to develop mandatory and enforceable 
Reliability Standards, subject to Commission review and approval.\4\ 
Reliability Standards may be enforced by the ERO, subject to Commission 
oversight, or by the Commission independently.\5\ Pursuant to section 
215 of the FPA, the

[[Page 13325]]

Commission established a process to select and certify an ERO,\6\ and 
subsequently certified NERC.\7\
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    \4\ 16 U.S.C. 824o(c).
    \5\ Id. 824o(e).
    \6\ Rules Concerning Certification of the Elec. Reliability 
Org.; and Procs for the Establishment, Approval, & Enforcement of 
Elec. Reliability Standards, Order No. 672, 114 FERC ] 61,104, order 
on reh'g, Order No. 672-A, 114 FERC ] 61,328 (2006).
    \7\ N. Am. Elec. Reliability Corp., 116 FERC ] 61,062, order on 
reh'g and compliance, 117 FERC ] 61,126 (2006), aff'd sub nom. 
Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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B. The February 2021 Cold Weather Reliability Event

    4. On February 16, 2021, the Commission, NERC, and Regional Entity 
staff initiated a joint inquiry into the circumstances surrounding a 
February 2021 cold weather reliability event that affected Texas and 
the South Central United States that culminated in a report 
identifying, among other things, recommendations for Reliability 
Standard improvements.\8\ The November 2021 Report found that the 
February 2021 cold weather reliability event was the largest controlled 
firm load shed event in U.S. history; over 4.5 million people lost 
power and at least 210 people lost their lives.\9\ The November 2021 
Report provided an assessment of the event as well as recommendations 
including, inter alia, Reliability Standard enhancements to improve 
extreme cold weather operations, preparedness, and coordination.\10\
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    \8\ See November 2021 Report at 9.
    \9\ Id.
    \10\ Id. at 184-212 (Key recommendations 1a through 1j).
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    5. After the February 2021 cold weather reliability event and 
before the November 2021 Report was issued, NERC filed a petition for 
approval of cold weather Reliability Standards addressing 
recommendations from a 2018 cold weather event report.\11\ In August 
2021, the Commission approved NERC's modifications to Reliability 
Standards EOP-011-2 (Emergency Preparedness and Operations), IRO-010-4 
(Reliability Coordinator Data Specification and Collection), and TOP-
003-5 (Operational Reliability Data).\12\ Reliability Standards IRO-
010-4 and TOP-003-5 require that reliability coordinators, transmission 
operators, and balancing authorities develop, maintain, and share 
generator cold weather data.\13\ Reliability Standard EOP-011-2 
requires generator owners to have generating unit cold weather 
preparedness plans and generator owners and generator operators to 
provide training for implementing the cold weather preparedness 
plans.\14\
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    \11\ FERC and NERC Staff, The South Central United States Cold 
Weather Bulk Electric System Event of January 17, 2018, 89 (July 
2019), https://www.ferc.gov/sites/default/files/2020-05/07-18-19-ferc-nerc-report_0.pdf.
    \12\ See generally N. Am. Elec. Reliability Corp., 176 FERC ] 
61,119 (2021) (noting that the Reliability Standards become 
enforceable on April 1, 2023).
    \13\ Id.
    \14\ Id.
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    6. On October 28, 2022, NERC filed a petition seeking approval, on 
an expedited basis, of Reliability Standards EOP-011-3 (Emergency 
Operations) and EOP-012-1 (Extreme Cold Weather Preparedness and 
Operations), the Reliability Standards' associated violation risk 
factors and violation severity levels, three newly-defined terms 
(Extreme Cold Weather Temperature, Generator Cold Weather Critical 
Component, and Generator Cold Weather Reliability Event), NERC's 
proposed implementation plan, and the retirement of Reliability 
Standard EOP-011-2.\15\ On February 16, 2023, the Commission approved 
Reliability Standards EOP-011-3 and EOP-012-1, and also directed NERC 
to develop and submit modifications to Reliability Standard EOP-012-1 
and to submit a plan on how NERC will collect and assess data 
surrounding the implementation of Reliability Standard EOP-012-1.\16\
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    \15\ NERC, Petition, Docket No. RD23-1-000, at 1-2 (filed Oct. 
28, 2022).
    \16\ See N. Am. Elec. Reliability Corp., 182 FERC ] 61,094, at 
PP 3-11 (February 2023 Order), order on reh'g, 183 FERC ] 61,222 
(2023).
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C. NERC's Petition and Proposed Reliability Standards EOP-011-4 and 
TOP-002-5

    7. On October 30, 2023, NERC filed a petition seeking approval on 
an expedited basis of proposed Reliability Standards EOP-011-4 and TOP-
002-5,\17\ the Reliability Standards' associated violation risk factors 
and violation severity levels, NERC's proposed implementation plan, and 
the retirement of currently approved EOP-011-3 and TOP-002-4.\18\ NERC 
explains that proposed Reliability Standards EOP-011-4 and TOP-002-5 
build on the 2021 and 2023-approved cold weather Reliability Standards, 
further reducing the risks posed by extreme cold weather to the 
reliability of the Bulk-Power System.\19\ NERC maintains that proposed 
Reliability Standards EOP-011-4 and TOP-002-5 are consistent with key 
recommendations from the November 2021 Report.\20\
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    \17\ The proposed Reliability Standards are not attached to this 
order. The proposed Reliability Standards are available on the 
Commission's eLibrary document retrieval system in Docket No. RD24-
1-000 and on the NERC website, https://www.nerc.com.
    \18\ NERC Petition at 1-2, 48, 54 (stating that, in the 
alternative, should Reliability Standard EOP-011-2 be in effect at 
the time of proposed Reliability Standard EOP-011-4's approval, then 
NERC seeks retirement of EOP-011-2).
    \19\ Id. at 1-2.
    \20\ Id. at 6; see also November 2021 Report at 190-91, 208-09 
(Key Recommendations 1g, 1h, and 1i).
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    8. NERC explains that it adopted a two-phase standard development 
project to develop, draft, and revise the extreme cold weather 
Reliability Standards in accordance with the November 2021 Report due 
to the extensive scope and demonstrated urgency of new and improved 
cold weather Reliability Standards. NERC states that its October 30, 
2023, petition represents the portions of its phase two standard 
development project pertaining to Key Recommendations 1g, 1h, and 
1i.\21\
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    \21\ NERC Petition at 21-22, 51.
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    9. NERC states that proposed Reliability Standard EOP-011-4 
advances reliability by requiring transmission operators to consider 
the impacts of load shedding during emergency conditions on the natural 
gas infrastructure that fuels a significant portion of bulk electric 
system generation.\22\ NERC explains that the purpose of proposed 
Reliability Standard EOP-011-4 is unchanged from EOP-011-3, and is to 
ensure that each transmission operator and balancing authority 
implements plans to mitigate operating emergencies and that such plans 
are coordinated within the reliability coordinator area. According to 
NERC, proposed Reliability Standard EOP-011-4 addresses Key 
Recommendation 1h and 1i from the November 2021 Report.\23\
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    \22\ Id. at 26-27.
    \23\ See id. at 27 (citing the November 2021 Report at 208-09).
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    10. NERC proposes to modify the approved, but not yet effective, 
Reliability Standard EOP-011-3 in multiple ways.\24\ First, NERC 
proposes to add distribution providers, Underfrequency Load Shed 
(UFLS)-only distribution providers, and transmission owners to the list 
of applicable entities that must comply with the Reliability Standard 
EOP-011-4.\25\ Second, under proposed Reliability Standard EOP-011-4, 
each transmission operator will be required to include operating plan

[[Page 13326]]

provisions that identify and prioritize designated critical natural gas 
infrastructure loads that are ``essential to the reliability of the 
bulk electric system.'' \26\ Third, balancing authorities must develop, 
maintain, and implement one or more reliability coordinator-reviewed 
operating plans with provisions for excluding critical natural gas 
infrastructure loads that are essential to the reliability of the bulk 
electric system as interruptible load, curtailable load, and demand 
response during extreme cold weather periods within each balancing 
authority area.\27\
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    \24\ Reliability Standard EOP-011-3, Requirements R3, R4, and R5 
are unchanged from the approved version. See N. Am. Elec. 
Reliability Corp., 176 FERC ] 61,119 (approving Reliability Standard 
EOP-011-2).
    \25\ The applicability section of Reliability Standard EOP-011-3 
identifies only balancing authorities, reliability coordinators, and 
transmission operators as the applicable entities.
    \26\ NERC Petition at 30-31; see also id. Ex. C-1 at 5.
    \27\ Id. at 39.
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    11. Proposed Reliability Standard EOP-011-4 Requirement R1 would 
also require that transmission operators implement operator-controlled 
manual load shed, Undervoltage Load Shed (UVLS), or UFLS in operating 
plans.\28\ Proposed Requirement R7 requires transmission operators to 
annually identify and notify distribution providers, UFLS-only 
distribution providers, and transmission owners that that they are 
required to assist with the mitigation of operating emergencies in its 
transmission operator area.\29\ Finally, proposed Requirement R8 states 
that each distribution provider, UFLS-only distribution provider, and 
transmission owner notified by a transmission operator per proposed 
Requirement R7 to assist with the mitigation of operating emergencies 
must develop, maintain, and implement a load shedding plan.\30\
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    \28\ Id.
    \29\ Id. at 35.
    \30\ Id. at 35-36.
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    12. NERC also requests approval of proposed Reliability Standard 
TOP-002-5 to provide greater specificity regarding the balancing 
authority's responsibilities in extreme cold weather. According to 
NERC, this proposed Reliability Standard would address parts of Key 
Recommendation 1g of the November 2021 Report.\31\
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    \31\ See id. at 41-42 (citing the November 2021 Report at 190-
91, which states that key recommendation 1g proposes enhancements to 
Reliability Standard TOP-003 to provide greater specificity about 
the relative roles of the generator owner, generator operator, and 
balancing authority in determining the generating unit capacity that 
can be relied upon during ``local forecasted cold weather'').
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    13. According to NERC, proposed Reliability Standard TOP-002-5 is 
unchanged from the prior version except for the addition of one new 
requirement, Requirement R8.\32\ Proposed Requirement R8 would require 
each balancing authority to have an operating process \33\ for extreme 
cold weather that includes: (1) a methodology for identifying ``extreme 
cold weather conditions'' in the area; (2) a methodology for 
determining an appropriate extreme cold weather reserve margin for the 
area, considering the types of operating limitations that have been 
known to limit resource availability in cold weather; and (3) a 
methodology for determining a five-day hourly forecast that accounts 
for all relevant operational considerations, including resource 
availability, demand, reserve requirements, and forecasted weather.\34\
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    \32\ Proposed Reliability Standard TOP-002-5, Requirements R1, 
R2, R3, R4, R5, R6, and R7 are unchanged from the mandatory and 
enforceable version, Reliability Standard TOP-002-4.
    \33\ NERC defines the term ``operating process'' as a ``document 
that identifies general steps for achieving a generic operating 
goal. An operating process includes steps with options that may be 
selected depending upon Real-time conditions. . . .'' NERC, Glossary 
of Terms Used in NERC Reliability Standards, 21 (Dec. 2023), https://www.nerc.com/pa/Stand/GlossaryofTerms/Glossary_of_Terms.pdf.
    \34\ NERC Petition at 43-48.
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    14. NERC requests that the Commission approve the proposed 
violation risk factors and violation severity levels for proposed 
Reliability Standards EOP-011-4 and TOP-002-5. Further, NERC proposes 
an effective date for proposed Reliability Standard EOP-011-4 beginning 
on the first day of the first calendar quarter that is six months 
following regulatory approval.\35\ Once identified and notified to 
assist by their transmission operators pursuant to proposed Requirement 
R7, the newly applicable entities (distribution providers, UFLS-only 
distribution providers, and transmission owners) will have 30 months to 
develop a load shedding plan pursuant to proposed Requirement R8. 
Transmission operators and balancing authorities would also have 30 
months from the effective date of proposed Reliability Standard EOP-
011-4 to comply with the revised provisions specific to UFLS, UVLS, and 
critical gas infrastructure loads.\36\ NERC also requests that the 
Commission approve the retirement of Reliability Standard EOP-011-3 
immediately prior to the effective date of Reliability Standard EOP-
011-4; or, of Reliability Standard EOP-011-2 if it is the version of 
EOP-011 in effect at the time that proposed Reliability Standard EOP-
011-4 becomes effective. NERC explains that this proposed 
implementation plan is necessary given the large amount of interaction 
that will be required between the applicable entities and natural gas 
entities to identify critical natural gas infrastructure loads and 
account for them as required in manual shedding and underfrequency and 
undervoltage load shedding schemes.\37\
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    \35\ See id. at Ex. B at 2-4; see also id. at 49 n.96 (observing 
that transmission operators will be required to comply with proposed 
Reliability Standard EOP-011-4 Requirement R7 and perform their 
first annual identification and notification to newly applicable 
entities by the effective date of the Reliability Standard).
    \36\ Proposed Reliability Standard EOP-011-4 Requirements R1, 
Part 1.2.5 (transmission operator), Requirement R2 Part 2.2.8 and 
Part 2.2.9 (balancing authority).
    \37\ NERC Petition at 48-49.
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    15. NERC proposes an effective date for proposed Reliability 
Standard TOP-002-5 beginning on the first day of the first calendar 
quarter that is 18 months following regulatory approval. NERC requests 
that the Commission approve the retirement of Reliability Standard TOP-
002-4 immediately prior to the effective date of Reliability Standard 
TOP-002-5. NERC states that the proposed implementation plan reflects 
consideration of the time needed to develop an extreme cold weather 
operating process, with the required methodologies reflecting the 
minimum cold weather reliability considerations identified in proposed 
Requirement R8.\38\
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    \38\ Id. at 50.
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    16. Finally, NERC requests that the Commission approve the proposed 
Reliability Standards in an expedited manner. NERC explains that, among 
other things, expedited approval would provide regulatory certainty to 
entities seeking to implement the proposed Reliability Standards ahead 
of the mandatory and enforceable dates.\39\
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    \39\ Id. at 53.
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II. Notice of Filing and Responsive Pleadings

    17. Notice of NERC's October 30, 2023, petition was published in 
the Federal Register, 88 FR 76,201 (Nov. 6, 2023), with comments, 
protests, and motions to intervene due on or before November 30, 2023.
    18. There were no comments or protests. Ameren Service Company, as 
an agent for Union Electric Company, filed a motion to intervene.

III. Determination

A. Procedural Matters

    19. Pursuant to Rule 214 of the Commission's Rules of Practice and 
Procedure, 18 CFR 385.214 (2023), the timely, unopposed motions to 
intervene serve to make the entities that filed them parties to this 
proceeding.

B. Substantive Matters

    20. Pursuant to section 215(d)(2) of the FPA, we approve proposed 
Reliability Standards EOP-011-4 and

[[Page 13327]]

TOP-002-5 as just, reasonable, not unduly discriminatory or 
preferential, and in the public interest. We also approve the proposed 
Reliability Standards' associated violation risk factors and violation 
severity levels, proposed Reliability Standard TOP-002-5 implementation 
plan, and the retirement of currently effective Reliability Standard 
TOP-002-4. We agree with NERC that the proposed modifications to the 
Reliability Standards are consistent with and respond to Key 
Recommendations 1g, 1h, and 1i from the November 2021 Report.\40\ Given 
the importance of these revised Reliability Standards to maintaining 
the reliable operation of the Bulk-Power System, we strongly encourage 
entities that are capable of complying earlier than the mandatory and 
enforceable date to do so.
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    \40\ See November 2021 Report at 190-91, 208-09.
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    21. We defer our decision on whether to approve or modify NERC's 
proposed implementation plan for proposed Reliability Standard EOP-011-
4 (and the proposed retirement of Reliability Standard EOP-011-2) until 
NERC submits the revised applicability section for Reliability Standard 
EOP-012-1.\41\ As mentioned in the Commission's February 2023 
Order,\42\ allowing Reliability Standard EOP-011-2 requirements to 
remain mandatory and enforceable until such time as the revised 
applicability is effective for Reliability Standard EOP-012-1 will 
ensure all bulk electric system generating units are required to 
maintain cold weather preparedness plans and associated trainings.
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    \41\ NERC states that it will submit a revised EOP-012 
Reliability Standard, specifically, Reliability Standard EOP-012-2, 
by the Commission's February 2024 deadline. See NERC Petition at 21, 
51.
    \42\ See February 2023 Order, 182 FERC ] 61,094 at PP 5, 59.
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    22. We find that proposed Reliability Standard EOP-011-4 materially 
improves the reliable operation of the Bulk-Power System, is an 
improvement over the 2021 and 2023-approved cold weather Reliability 
Standards, and enhances reliability by requiring balancing authorities, 
transmission operators, and load shedding entities to account for 
critical natural gas infrastructure loads in the demand response and 
emergency load shedding programs they oversee. Doing so will help 
ensure that deploying these programs in extreme cold weather conditions 
will not exacerbate natural gas fuel supply issues, which could 
constrain generating unit capacity and thereby threaten the reliable 
operation of the Bulk-Power System. Accordingly, we approve Reliability 
Standard EOP-011-4 as proposed.
    23. Under Reliability Standard EOP-011-4, Requirement R1, each 
transmission operator must include provisions in its operating plan(s) 
for the identification of designated critical natural gas 
infrastructure loads that are essential to the reliability of the bulk 
electric system.\43\ This Reliability Standard also requires that each 
distribution provider, UFLS-only distribution provider, and 
transmission owner include provisions in its load shedding plan(s) for 
the identification of designated critical natural gas infrastructure 
loads that are ``essential to the reliability of the bulk electric 
system.'' \44\ While Reliability Standard EOP-011-4 employs a flexible 
approach for the above entities to identify critical natural gas 
infrastructure loads, this Reliability Standard may require 
coordination and communication between electric and natural gas 
entities pertaining to extreme cold weather beyond what has 
historically occurred.\45\ As such, we strongly encourage the electric 
and natural gas entities that play a role in these Reliability 
Standards to voluntarily begin enhancing their coordination and 
communication this winter season, prior to the Reliability Standard's 
mandatory and enforceable effective date.
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    \43\ Reliability Standard EOP-011-4, Requirement R1, Part 
1.2.5.5.
    \44\ Id., Requirement R8, Part 8.1.5.
    \45\ See NERC Petition at 32-33 (stating that one method for 
identifying such loads may include distributing criteria to natural 
gas infrastructure entities to identify the critical facilities that 
would likely affect bulk electric system reliability adversely if 
de-energized).
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    24. We find that proposed Reliability Standard TOP-002-5 materially 
improves the reliable operation of the Bulk-Power System, represents an 
improvement to the existing Reliability Standards, and enhances 
reliability by requiring that balancing authorities have comprehensive 
operating processes for extreme cold weather periods in their areas. 
Proposed Reliability Standard TOP-002-5 also requires each balancing 
authority to notify the entities identified in these operating plans of 
their respective roles and to provide the operating plans to its 
reliability coordinator for visibility. Proposed Reliability Standard 
TOP-002-5 recognizes that there have been several past extreme cold 
weather events where load and resource balancing issues have occurred 
due to unexpected generator trips and higher loads than forecasted. 
Proposed Requirement R8 formalizes the balancing authority's process to 
review and respond to oncoming conditions that may affect generation 
availability and capability, to forecast load, and to determine whether 
additional capability or reserves should be ready to serve loads during 
extreme cold weather. These changes will be beneficial by providing 
greater specificity about the relative roles of generators and the 
balancing authority in preparing for reliable cold weather operations. 
Accordingly, we approve Reliability Standard TOP-002-5 as proposed.

IV. Information Collection Statement

    25. The information collection requirements contained in this Order 
are subject to review by the Office of Management and Budget (OMB) 
under section 3507(d) of the Paperwork Reduction Act of 1995.\46\ OMB's 
regulations require approval of certain information collection 
requirements imposed by agency rules.\47\ Upon approval of a collection 
of information, OMB will assign an OMB control number and expiration 
date. Comments on the collection of information are due within 60 days 
of the date this order is published in the Federal Register. 
Respondents subject to the filing requirements of this rule will not be 
penalized for failing to respond to these collections of information 
unless the collections of information display a valid OMB control 
number.
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    \46\ 44 U.S.C. 3507(d).
    \47\ 5 CFR 1320 (2023).
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    26. The Commission solicits comments on the Commission's need for 
this information, whether the information will have practical utility, 
the accuracy of the burden estimates, ways to enhance the quality, 
utility, and clarity of the information to be collected or retained, 
and any suggested methods for minimizing respondents' burden, including 
the use of automated information techniques.
    27. The EOP Reliability Standards are currently located in the 
FERC-725S (OMB Control No. 1902-0270) collection. The collection is 
currently approved by OMB and contains Reliability Standards EOP-010-1, 
EOP-011-2, EOP-004-4, EOP-005-3, EOP-006-3, EOP-008-2, and EOP-012-1. 
There is one Reliability Standard that is being updated within the 
FERC-725S due to the revisions in Docket No. RD24-1-000: Reliability 
Standard EOP-011-4. The currently approved Reliability Standard is EOP-
011-3, which is being replaced by Reliability Standard EOP-011-4 (Table 
1).
    28. The TOP Reliability Standards are currently located in FERC-
725A (OMB Control No. 1902-0270) collection. This

[[Page 13328]]

collection is currently approved by OMB and contains Reliability 
Standards TOP-001-4, TOP-002-4, TOP-003-4, FAC-008-5, FAC-003-2, and 
``Mandatory Reliability Standards'' recordkeeping and reporting. There 
are six information collections within the FERC-725A that will remain 
unchanged from the revisions in Docket No. RD24-1-000. These six 
collections include the Reliability Standards: TOP-001-4, TOP-003-4, 
FAC-008-5, FAC-003-2, and ``Mandatory Reliability Standards'' 
recordkeeping and reporting. There is one Reliability Standard being 
updated within the FERC-725A due to revisions in Docket No. RD24-1-000: 
Reliability Standard TOP-002-4, which is being replaced by Reliability 
Standard TOP-002-5 (Table 2).
    29. The number of respondents below is based on an estimate of the 
NERC compliance registry for balancing authorities, transmission 
operators, reliability coordinators, transmission owners, distribution 
providers and UFLS-Only distribution providers. Reliability Standard 
EOP-011-4 applies to balancing authorities, transmission operators, 
reliability coordinators, transmission owners, distribution providers 
and UFLS-Only distribution providers. Reliability Standard TOP-002-5 
applies to transmission operators and balancing authorities, for this 
estimate new Requirement R8 applies to the balancing authorities. The 
Commission based its paperwork burden estimates on the NERC compliance 
registry as of December 15, 2023. According to the registry there are 
98 balancing authorities, 165 transmission operators, and 12 
reliability coordinators. The estimates in the tables below are based 
on the change in burden from the Reliability Standards approved in this 
order. The Commission based the burden estimates in the tables below on 
staff experience, knowledge, and expertise.
    30. Public Reporting Burden: The estimated costs and burden for the 
revisions in Docket No. RD24-1-000 are shown in the tables below.
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    \48\ TOP = Transmission Operator, BA = Balancing Authority, RC = 
Reliability Coordinator, UFLS-Only DP = Underfrequency Load Shed-
Only Distribution Provider, DP = Distribution Provider, and TO = 
Transmission Owner.
    \49\ The estimated hourly cost (salary plus benefits) is a 
combination based on the Bureau of Labor Statistics (BLS), as of 
2023, for 75% of the average of an Electrical Engineer (17-2071)-
$77.29, mechanical engineers (17-2141)-$87.38. $77.29 + $87.38/2 = 
82.335 x .75 = 54.303 ($61.75 rounded) ($61.75/hour) and 25% of an 
Information and Record Clerk (43-4199) $56.14 x .25% = 14.035 
($14.04 rounded) ($14.04/hour), for a total ($61.75 + $14.04 = 
$75.79/hour).

                                  Table 1--Proposed Changes to FERC 725S Due to Modifications in Docket No. RD24-1-000
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                                                                  Number of
                                      Type \48\ and number of      annual                                    Average number of
 Reliability standard & requirement            entity           responses per  Total number of responses     burden hours per       Total burden hours
                                                                   entity                                      response \49\
                                      (1)....................             (2)  (1) * (2) = (3)..........  (4)...................  (3) * (4) = (5)
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                                                FERC-725S--Proposed estimates due to RD24-1 for EOP-011-4
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                                                      One Time Estimate--Years 1 and 2 in EOP-011-4
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EOP-011-4...........................  165 (TOP)..............               1  165......................  40 hrs., $3,031.60....  6,600 hrs.,
                                                                                                                                   $500,214.00.
EOP-011-4...........................  98 (BA)................               1  98.......................  20 hrs., $1,515.80....  1,960 hrs.,
                                                                                                                                   $148,548.40.
EOP-011-4...........................  12 (RC)................               1  12.......................  20 hrs., $1,515.80....  240 hrs., $18,189.60.
EOP-011-4...........................  72 (UFLS-Only DP)......               1  72.......................  40 hrs., $3,031.60....  2,880 hrs.,
                                                                                                                                   $218,275.20.
EOP-011-4...........................  300 (DP)...............               1  300......................  40 hrs., $3,031.60....  12,000 hrs.,
                                                                                                                                   $909,480.00.
EOP-011-4...........................  324 (TO)...............               1  324......................  40 hrs., $3,031.60....  12,960 hrs.,
                                                                                                                                   $982,238.40.
                                     -------------------------------------------------------------------------------------------------------------------
    Sub-total of EOP-011-4 (One       .......................  ..............  971......................  ......................  36,640 hrs.,
     time).                                                                                                                        $2,776,945.60.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized One-Time Costs (average    .......................  ..............  323.67 (rounded).........  ......................  12,213 hrs. (rounded),
 cost per year is calculated by the                                                                                                $925,623.27.
 sub-total divided by 3).
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Ongoing Estimate--Year 3 ongoing EOP-011-4
--------------------------------------------------------------------------------------------------------------------------------------------------------
EOP-011-4...........................  165 (TOP)..............               1  165......................  20 hrs., $1,515.80....  3,300 hrs.,
                                                                                                                                   $250,107.00.
EOP-011-4...........................  98 (BA)................               1  98.......................  4 hrs., $303.16.......  392 hrs., $29,709.68.
EOP-011-4...........................  12 (RC)................               1  12.......................  4 hrs., $303.16.......  48 hrs., $3,637.92.
EOP-011-4...........................  72 (UFLS-Only DP)......               1  72.......................  10 hrs., $757.90......  720 hrs., $54,568.80.
EOP-011-4...........................  300 (DP)...............               1  300......................  10 hrs., $757.90......  3,000 hrs.,
                                                                                                                                   $227,370.00.
EOP-011-4...........................  324 (TO)...............               1  324......................  10 hrs., $757.90......  3,240 hrs.,
                                                                                                                                   $245,559.60.
                                     -------------------------------------------------------------------------------------------------------------------
    Sub-Total of EOP-011-4 (ongoing)  .......................  ..............  971......................  ......................  10,700, $810,953.00
    Sub-Total of ongoing burden       .......................  ..............  323.67 (rounded).........  ......................  3,566.67 hrs.
     averaged over three years.                                                                                                    (rounded),
                                                                                                                                   $270,317.92.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proposed Total Annual Burden          .......................  ..............  647.34...................  ......................  15,779.67 hrs.,
 Estimate of EOP-011-4 (one-time                                                                                                   $1,195,941.19
 plus ongoing).                                                                                                                    (rounded).
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 13329]]


              Table 2--Proposed Changes to FERC 725A Due to Modifications in Docket No. RD24-1-000
----------------------------------------------------------------------------------------------------------------
                                Type \50\                                                          Total annual
                                and number   Annual number   Total number of   Average burden &   burden hours &
      Requirement change            of       of responses       responses          cost per        total annual
                               respondents  per respondent                       response \51\         cost
                                       (1)             (2)  (1) * (2) = (3)..  (4).............  (3) * (4) = (5)
----------------------------------------------------------------------------------------------------------------
                                   FERC-725A--Proposed estimates due to RD24-1
----------------------------------------------------------------------------------------------------------------
                                  One Time Estimate--Years 1 and 2 in TOP-002-5
----------------------------------------------------------------------------------------------------------------
TOP-002-5....................      98 (BA)               1  98...............  40 hrs.,          3,920 hrs.,
                                                                                $3,031.60.        $297,096.80.
----------------------------------------------------------------------------------------------------------------
                                   Ongoing Estimate--Year 3 ongoing TOP-002-5
----------------------------------------------------------------------------------------------------------------
TOP-002-5....................      98 (BA)               1  98...............  20 hrs.,          1,960 hrs.,
                                                                                $1,515.80.        $148,548.40.
                              ----------------------------------------------------------------------------------
    Sub-Total of One-Time      ...........  ..............  98...............  40 hrs.,          3,920 hrs.,
     estimate for years 1 and                                                   $3,031.60.        $297,096.80.
     2.
    Sub-Total for Ongoing      ...........  ..............  98...............  20 hrs.,          1,960 hrs.,
     estimate of year 3 and                                                     $1,515.80.        $148,548.40.
     beyond.
----------------------------------------------------------------------------------------------------------------
Annualized one-time Total      ...........  ..............  32.67 (rounded)..  13.33 hrs.        1,306.67 hrs.,
 burden for years 1 and 2                                                       (rounded),        $99,032.52
 (one-time sub-total divided                                                    $1,010.28.        (rounded).
 by 3).
Annualized ongoing total       ...........  ..............  32.67 (rounded)..  6.67 hrs.,        653.33 hrs.,
 burden for years 3 and                                                         $505.52           $49,515.88
 beyond (ongoing sub-total                                                      (rounded).        (rounded).
 divided by 3).
Annualized Total Burden        ...........  ..............  65.34............  20 hrs.,          1,960 hrs.,
 Estimate of TOP-002-5.                                                         $1,515.80.        $148,548.40.
----------------------------------------------------------------------------------------------------------------

    Titles: FERC-725S (Mandatory Reliability Standards: Emergency 
Preparedness and Operations (EOP) Reliability Standards)); FERC-725A 
(Mandatory Reliability Standards for the Bulk-Power System).
---------------------------------------------------------------------------

    \50\ BA = Balancing Authority.
    \51\ The estimated hourly cost (salary plus benefits) is a 
combination based on the Bureau of Labor Statistics (BLS), as of 
2023, for 75% of the average of an Electrical Engineer (17-2071)-
$77.29, mechanical engineers (17-2141)-$87.38. $77.29 + $87.38/2 = 
82.335 x .75 = 54.303 ($61.75 rounded) ($61.75/hour) and 25% of an 
Information and Record Clerk (43-4199) $56.14 x .25% = 14.035 
($14.04 rounded) ($14.04/hour), for a total ($61.75+$14.04 = $75.79/
hour).
---------------------------------------------------------------------------

    Action: Revision to Existing Collections of Information in FERC-
725S and FERC-725A.
    OMB Control Nos: 1902-0270 (FERC 725S); 1902-0244 (FERC-725A).
    Respondents: Business or other for profit, and not for profit 
institutions.
    Frequency of Responses: Annually.
    Necessity of the Information: Reliability Standards EOP-011-4 
(Emergency Operations) and TOP-002-5 (Operations Planning) are part of 
the implementation of the Congressional mandate of the Energy Policy 
Act of 2005 to develop mandatory and enforceable Reliability Standards 
to better ensure the reliability of the nation's Bulk-Power System. 
Specifically, the revised Reliability Standard EOP-011-4 addresses the 
effects of operating emergencies by ensuring that each transmission 
operator and balancing authority has developed plan(s) to mitigate 
operating emergencies and that those plans are implemented and 
coordinated within the reliability coordinator area. Further, revised 
Reliability Standard TOP-002-5 ensures that transmission operators and 
balancing authorities have plans for operating within specified limits.
    Internal review: The Commission has reviewed the revised 
Reliability Standards and made a determination that its action is 
necessary to implement section 215 of the FPA. The Commission has 
assured itself, by means of its internal review, that there is 
specific, objective support for the burden estimates associated with 
the information requirements.
    a. Description of the Revision to FERC-725S: The FERC-725S (OMB 
Control No. 1902-0270) is an existing information collection that 
contains the requirements for the EOP-011-3 Reliability Standard. As 
described in the Docket No. RD24-1-000 above, the Reliability Standard 
(EOP-011-3) is proposed to be retired and replaced by EOP-011-4.
    b. Description of the Revision to FERC-725A: The FERC-725A (OMB 
Control No. 1902-0244) is an existing information collection that 
contains the requirements for the TOP-002-4 Reliability Standard.\52\ 
As described in Docket No. RD24-1-000 above, Reliability Standard TOP-
002-4 is approved to be retired and replaced by TOP-002-5.
---------------------------------------------------------------------------

    \52\ This collection is currently pending at OMB for an 
unrelated matter.
---------------------------------------------------------------------------

    31. Interested persons may obtain information on the reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
Office of the Executive Director, 888 First Street NE, Washington, DC 
20426 [Attention: Jean Sonneman, email: <a href="/cdn-cgi/l/email-protection#34705540557758515546555a575174525146571a535b42"><span class="__cf_email__" data-cfemail="5b1f3a2f3a18373e3a293a35383e1b3d3e2938753c342d">[email protected]</span></a>, phone: 
(202) 502-8663, fax: (202) 273-0873].
    32. Comments concerning the information collections and 
requirements approved for retirement in this order and the associated 
burden estimates, should be sent to the Commission (identified by 
Docket No. RD24-1-000), using the following methods: Electronic filing 
through https://www.ferc.gov is preferred. Electronic Filing should be 
filed in acceptable native applications and print-to-PDF, but not in 
scanned or picture format. For those unable to file electronically, 
comments may be filed by USPS mail or by hand (including courier) 
delivery: Mail via U.S. Postal Service Only: Addressed to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street NE, Washington, DC 20426. Hand (including courier) delivery: 
Deliver to: Federal Energy Regulatory Commission, 12225 Wilkins Avenue, 
Rockville, MD 20852.

V. Environmental Analysis

    33. The Commission is required to prepare an Environmental 
Assessment or an Environmental Impact Statement for any action that may 
have a significant adverse effect on the human environment.\53\ The 
Commission has categorically excluded certain actions from this 
requirement as not having a significant effect on the human 
environment. Included in the exclusion

[[Page 13330]]

are rules that are clarifying, corrective, or procedural or that do not 
substantially change the effect of the regulations being amended.\54\ 
The actions directed herein fall within this categorical exclusion in 
the Commission's regulations.
---------------------------------------------------------------------------

    \53\ Reguls. Implementing the Nat'l Env't Pol'y Act, Order No. 
486, FERC Stats. & Regs. ] 30,783 (1987) (cross-referenced at 41 
FERC ] 61,284).
    \54\ 18 CFR 380.4(a)(2)(ii) (2023).
---------------------------------------------------------------------------

VI. Document Availability

    34. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
internet through the Commission's Home Page (http://www.ferc.gov).
    35. From the Commission's Home Page on the internet, this 
information is available on eLibrary. The full text of this document is 
available on eLibrary in PDF and Microsoft Word format for viewing, 
printing, and/or downloading. To access this document in eLibrary, type 
the docket number excluding the last three digits of this document in 
the docket number field.
    36. User assistance is available for eLibrary and the Commission's 
website during normal business hours from the Commission's Online 
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at 
<a href="/cdn-cgi/l/email-protection#e98f8c9b8a86878580878c9a9c9999869b9da98f8c9b8ac78e869f"><span class="__cf_email__" data-cfemail="42242730212d2c2e2b2c27313732322d303602242730216c252d34">[email protected]</span></a>, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
<a href="/cdn-cgi/l/email-protection#e09095828c8983ce9285868592858e8385928f8f8da086859283ce878f96"><span class="__cf_email__" data-cfemail="5d2d283f31343e732f383b382f38333e382f3232301d3b382f3e733a322b">[email protected]</span></a>.
    The Commission orders:
    (A) Reliability Standards EOP-011-4 and TOP-002-5 and their 
associated violation risk factors and violation severity levels are 
hereby approved, as discussed in the body of this order.
    (B) The decision on whether to approve or modify NERC's proposed 
implementation date for Reliability Standard EOP-011-4 (and the 
proposed retirement of Reliability Standard EOP-011-2 and EOP-011-3) is 
hereby deferred until NERC submits its revised applicability section 
for Reliability Standard EOP-012-2.
    By the Commission. Commissioner Clements is concurring with a 
separate statement attached.

    Issued: February 15, 2024.
Debbie-Anne A. Reese,
Acting Secretary.

United States of America

Federal Energy Regulatory Commission

North American Electric Reliability Corporation

Docket No. RD24-1-000
(Issued February 14, 2024)
CLEMENTS, Commissioner, concurring:
    1. While I am voting with my colleagues to approve these revised 
Reliability Standards, I am writing separately to express my concern 
with the delayed implementation timeline for EOP-011-4.
    2. Today's order highlights ``the importance of these revised 
Reliability Standards to maintaining the reliable operation of the 
Bulk-Power System.'' \1\ But this stated importance is undercut by the 
extended time granted to affected Registered Entities to implement the 
new requirements. Specifically, NERC proposed that EOP-011-4 become 
effective on the first day of the first calendar quarter that is six 
months following regulatory approval,\2\ and then for each affected 
Registered Entity to have at least 30 months after this effective date 
to comply with the new and revised provisions of the requirement.\3\ 
Under the best of scenarios, this would mean that these new and revised 
provisions would be implemented no sooner than April 1, 2027--three 
years, and crucially, three winters from today.\4\
---------------------------------------------------------------------------

    \1\ Order, 186 FERC ] 61,115, at P 20 (2024).
    \2\ By my calculation, this would mean October 1, 2024.
    \3\ NERC, Petition, Docket No. RD24-1-000, Exhibit B 
``Implementation Plan'' at 3 (filed Oct. 30, 2023).
    \4\ However, as discussed in the draft order, the actual 
effective date and implementation plan for EOP-011-4 hinges on 
NERC's upcoming submission, and Commission approval, of a revised 
applicability section for EOP-012. If the Commission was to reject 
the revised applicability section of EOP-012, it is unclear to me 
when we can expect the requirements to EOP-011-4 (and the preceding, 
but also yet to be effective, EOP-011-3) to be implemented.
---------------------------------------------------------------------------

    3. Three years after regulatory approval to implement changes to a 
Reliability Standard is an awfully long time. By the time these 
standards are implemented, recent experience has taught us that we are 
likely to face one or more dangerous winter storms. As with Uri in 
February 2021, Elliott in December 2022, and Gerri/Heather in January 
2024, widespread, long duration winter storms that threaten the 
reliability of our system are no longer rare events, but rather nearly 
annual occurrences.
    4. I appreciate that NERC has continually worked with its 
stakeholders to advance improved Reliability Standards for cold weather 
operations and preparedness following Winter Storm Uri and the 
subsequent Staff Report.\5\ I also recognize that the 30-month 
implementation timeframe is responsive to some stakeholders' concerns 
about the potential time needed to implement any physical changes 
necessary to comply with the requirements of the revised standard. 
However, considering the urgency of the winter storm risk that faces 
our system, this is not the first time that I have been left wondering 
if our processes for drafting and implementing needed Reliability 
Standards, whether they be cold weather standards or cybersecurity 
standards, are too slow to keep up with needed change.\6\
---------------------------------------------------------------------------

    \5\ See FERC, NERC, and Regional Entity Staff, The February 2021 
Cold Weather Outages in Texas and the South Central United States, 
19 (Nov. 16, 2021) (November 2021 Report), https://www.ferc.gov/media/february-2021-cold-weather-outages-texas-and-south-central-united-states-ferc-nerc-and.
    \6\ See, e.g., Transcript of the 1097th Meeting, FERC, at 21 
(Jan. 19, 2023), https://www.ferc.gov/media/transcript-january-2023-commission-meeting (``I'm very pleased that we are directing a firm 
15-month deadline for NERC to propose the standards. . . . The 
processes take time, but it is imperative that we get this important 
cybersecurity measure in place as quickly as it is feasible.''); 
Transcript of the 1098th Meeting, FERC, at 23-24 (Feb. 16, 2023), 
https://www.ferc.gov/media/transcript-february-2023-commission-meeting (``[T]he critical generator weatherization requirements as 
proposed are, to be frank, not up to the task. The proposal before 
us requires existing generators to weatherize so they are capable of 
operating for one hour at extreme cold temperatures beginning in 
April of 2027. . . . [W]aiting [for] four additional winters before 
weatherization requirements actually kick in does not reflect the 
urgency we feel.'').
---------------------------------------------------------------------------

    For these reasons, I respectfully concur.

Allison Clements,

Commissioner.

[FR Doc. 2024-03608 Filed 2-21-24; 8:45 am]
BILLING CODE 6717-01-P


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